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Copy of Copy of Managing Global Human Resources - The Hotel Paris Case

Prof. Choi Man-Ki, Human Resource Management

Faisal Rehman

on 27 March 2013

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Transcript of Copy of Copy of Managing Global Human Resources - The Hotel Paris Case


The Hotel Paris Case
Managing Global Human Resources
Case study by:
Cristina H. Monroy
GMBA student – 1401422
Management Managing Global Human Resources The Hotel Paris’s competitive strategy is, “To use superior quest service to differentiate the Hotel Paris properties, and to thereby increase the length of stay and return rate of guests, and thus boost revenues and profitability.” HR manager Lisa Cruz must now formulate functional Policies and activities that support this competitive strategy, by eliciting the required employee behaviors and competencies. With Hotels in 11 cities in Europe and the United States. Lisa knew the company had to do a better job of managing its global human resources. Problems: 1.There was no formal means of identifying or training management employees for duties abroad (either for those going to the United States or to Europe). 3.High performing services and hotel firms had formal departure training programs for at least 90% of the employees they sent abroad; the Hotel Paris had no such programs. 4.Each city’s hotel operating its own local hotel HR information system, there was no easy way for Lisa, the CFO, or the company’s CEO to obtain reports or metrics like turnover, absences, or worker’s compensation cost across all different hotels. Lisa knew this was no way to run a multinational business. She turned her attention to developing the HR practices her company required to do business more effectively internationally). It was apparent to Lisa and the CFO that the company’s global human resource practices were probably inhibiting the Hotel Paris from being the world-class quest services company that sought to be. Challenge: “If we can’t measure how each hotel is doing in terms of human resource metrics like these, there’s really no way to manage these activities, so there’s no telling how much lost profits and wasted efforts are dragging down each hotel’s performance”. Lisa received approval to institute new global human resources programs and practices. JOBS IN A HOTEL Front Office
Management Administrative Staff Service
Positions Guest Assistance Hotel Manager Hotel managers work in various fields to ensure that things run smoothly in the hotel. He is in charge of the rest of the staff and duties include overseeing the front office, kitchen and housekeeping staff. The hotel manager is responsible for dealing with any customer complaints as well. According to the Bureau of Labor Statistics a 3.5 percent growth in employment is expect from 2008 to 2018. According to the Bureau of Labor Statistics (BLS), a hotel's front office manager oversees guest reservations and room assignments and hires, trains and supervises front desk employees. Front desk managers handle issues and complaints and facilitate special requests from guests. Because they represent the hotel and its owners--either a corporation or independent--front desk managers must be professional, polished and put together. They need communication skills to work with employees and guests. According to the BLS, service workers comprise 65 percent of the hotel industry's employment, as of 2009. Service positions include maids and housekeepers, janitors and food preparers. Other service positions include servers, bartenders and dining room workers. Hotels also may require personnel to maintain the grounds and landscaping, and if the property has a casino, it needs gaming employees from managers to dealers. Because service personnel interact with guests, it is important that they have a friendly, customer service-oriented attitude. Service jobs are not always pleasant because cleaning up after other people has its drawbacks. The jobs are usually physical and require attention to detail. The larger the hotel, the more likely it is to have uniformed employees to help guests as they arrive and check out. Doormen, bellhops and baggage porters assist with luggage and show guests to their rooms. They also direct taxi lines and run valet stands. Concierges help guests with special requests such as event tickets, restaurant reservations, local tips and babysitting services. Hotels can be large operations that require a great deal of behind-the-scenes work. Administrative personnel and management usually handle human resources, purchasing, marketing and sales, accounting and security. While some of these positions may be held at a corporate level, other times they are housed at each individual property. The BLS notes different areas of hotel operations also require supervision and management, such as food and beverage, housekeeping and maintenance.
Solutions -Since 90% of the employees send abroad, either in United States or Europe, upon interviewing employees to be hired, they should be ask first I they want to work abroad as well, because Hotel Paris is an International firm. -For those positions that can be transfer abroad, multi-lingual employees are needed, and this should be check upon hiring. French and English are basic language requirements, plus 1 or more (Irish, Polish, German, Spanish, and Italian). At least the employee is proficient in 3-language (French, English and either of the 5). -Employees that can be send abroad sometime in the future, they must choose the top 5 countries they want to be transferred, language proficiency is required for the first 3 countries of their choice. -Upon hiring for new employees, they should undergo at least 3-6 month probationary period, by this time they should be trained, and acquire necessary skills for working abroad including high performing services skills. During at least 3-month of training, they should be evaluated. Once their performance qualified, they can become a regular employee. - Only regular employees can work abroad. -The employee must have the language skills of the country that he/she will be transfer. The Hotel Paris must provide a “CONTRACT AGREEMENT” indicating how long the employee should work in other country and duties abroad. In case, the employee won’t be able to finish the contract for personal reasons, he/she must return all the expenses of the Hotel management in double amount. - The Hotel Paris must have an I.T. system, wherein the Administrative Staff will be in charge of updating the system about, purchasing, marketing and sales, accounting, turnover, absences, worker’s compensation, etc. This should be on bi-weekly basis. Question
# 1 Question
# 2 Question
# 3 1.Provide a 1-page summary of what individual hotel managers should know in order to make it more likely incoming employees from abroad, like those in the Hotel Paris’s management development program, will adopt to their new surroundings. Answer: Individual Hotel Manager must assist or provide the incoming employees from abroad with the following: -Country’s culture orientation
-Assign task to the new employees from abroad
-Welcome them in the Hotel branch and introduce them to their co-workers.
-Assign a buddy to them who will assist them for at least 2 months, the one who will introduce those good restaurants, malls, theaters, etc. Assist, provide or inform the following upon arrival:

-Accommodation – Apartment, condo or house renting
-Advance negotiations for employees, then sign a contract.
-Inform them the rules and regulations and the firm’s culture.
-Annual vacation (holidays)
-Annual licensing of a car
-Annual Salary and Salary Comparison
-Bank Accounts
-Basics, clothes, food, footwear, furniture, household appliances, mobile phones etc.
-Hotel’s restrictions and limitations
-Cost of living
-Electricity & gas (cooking)
-Gasoline (petrol)
-Dress code
-Health Insurance, health care services and hospitals
-Insurance on cars, homes and contents
-Dental Insurance
-Welfare benefits
-Employment for your spouse and any older children may be possible or restricted
-Employment Rights
-Human Rights
-Employment workforce
-Expatriate Management and Mobility Awards
-Limitation on the number of children who are not nationals.
-Corporate Pension plans
-Passports for newcomers and their visitors 2.In previous chapter you recommended various human resource practices Hotel Paris should use. Choose one of these, and explain why you believe they could take this program abroad, and how you suggest they do so. I would choose,
Chapter 8: Training & Developing Employees Answer: Answer: Reasons & Benefits:
Training and development can be initiated for a variety of reasons for an employee or group of employees. Performance appraisal will indicate whether improvement is needed. It will "benchmark" the status of improvement so far in a performance improvement effort. It is important as a part of an overall professional development program.  Typical Topics of Employee Training Communications:

The increasing diversity of today's workforce brings a wide variety of languages and customs. Customer service:

Increased competition in today's global marketplace makes it critical that employees understand and meet the needs of customers. Human relations:

The increased stresses of today's workplace can include misunderstandings and conflict. Training can people to get along in the workplace. Quality initiatives:

Initiatives such as Total Quality Management, Quality Circles, benchmarking, etc., require basic training about quality concepts, guidelines and standards for quality, etc. Ethics:

Today's society has increasing expectations about corporate social responsibility. Also, today's diverse workforce brings a wide variety of values and morals to the workplace. Diversity:

Diversity training usually includes explanation about how people have different perspectives and views, and includes techniques to value diversity Safety:

Safety training is critical where working with heavy equipment , hazardous chemicals, repetitive activities, etc., but can also be useful with practical advice for avoiding assaults, etc. Sexual harassment:

Sexual harassment training usually includes careful description of the organization's policies about sexual harassment, especially about what are inappropriate behaviors. Computer skills:

Computer skills are becoming a necessity for conducting administrative and office tasks.

 -Increased job satisfaction and morale among employees
 -Increased employee motivation
 -Increased efficiencies in processes, resulting in financial gain
 -Increased capacity to adopt new technologies and methods
 -Increased innovation in strategies and products
 -Reduced employee turnover
 -Enhanced company image, e.g., conducting ethics training
 -Risk management, e.g., training about sexual harassment,
diversity training General Benefits from Employee Training and Development 3.Choose one Hotel Paris human resources practice that you believe is essential to the company achieving its high-quality-service goal, and explain how you would implement that practice in the firm’s various hotels worldwide. I would choose,
Chapter 9: Performance Management
& Appraisal Performance Appraisals can increase productivity of the people you manage. Employee Development:

The manager discusses employee strengths and how to apply them. Goals are discussed as well as plans for growth. Employee Motivation:

A non-threatening exchange of ideas between the manager and the employee which may help to solidify the relationship. Employee Relations:

A chance to find out how the employee feels about you, the job, and the company. Employer branding 3.0: The next generation
HRM 17 Sep 2010

For the past two and half years I have been travelling the world interacting with leaders and sharing best practice in employer branding. Each new country provides an opportunity to learn about the local nuances and the challenges of delivering an employment experience which positively impacts on an employee's ability to deliver a brand experience expected by their customers.

In each of the 20 countries I have travelled to, it is evident there are political, economic, social and technological forces confronting companies which will require a combined stakeholder effort to ensure business sustainability. However, I find there is one common force that connects us all - the human will to create a better society. We hear political leaders talk about it in discussions on critical issues such as climate change, financial reform and labour practices. Future sustainability will require a collaborative effort to maintain a healthy balance of 'what's good for profit' and 'what's good for society.'

A study by the US Federal Reserve Board shows the dramatic increase in the importance of intangibles such as brand to overall corporate value in the second half of the twentieth century. Today it is possible to argue that in general the majority of business value is derived from intangibles such as the employer brand.
Since its inception in the early 1990s employer branding has evolved through three stages: employer branding 1.0, employer branding 2.0 and employer branding 3.0 (see table 1).

Employer branding 1.0 was characterised by one way interactions between employers and their employees and customers. Employees were seen as an infinite resource and talent was in abundance during the industrial revolution. Jobs were for life and employer branding was used to fill jobs as companies experienced growth.
Employer branding 2.0 evolved due to advances in technology and the invention of the internet. This led to the rise of the knowledge worker and centralised manufacturing in developing nations where labour costs were low. Generation Y employees grew up seeing their parents being laid off and by the time they turned 25 years most already had multiple careers. The ageing population in many developed nations and declining fertility rates and globalisation led to a talent scarcity and higher wages as companies enjoyed an extended period of growth in the first decade of the new Millennium.

The GFC has led to a shift towards employer branding 3.0. Tomorrow's most successful companies will be those that recognise all stakeholders have a responsibility to make the world a better place, not just employees and customers, but suppliers and investors too. A positive employee experience will lead to higher levels of employee engagement which will drive customer engagement, increased investments and company and shareholder profits. Creating a better society must become the starting point of strategy development and not company profits as the core driver of strategy, an approach which the GFC showed is not sustainable.

Employer brand 3.0 - A model of brand advocacy & loyalty

A 2007 Towers Perrin survey of nearly 90,000 employees worldwide found that only 21% felt fully engaged at work and nearly 40% were disenchanted or disengaged. That negativity has a direct impact on the bottom line. Towers Perrin found that companies with low levels of employee engagement had a 33% annual decline in operating income and an 11% annual decline in earnings growth. Those with higher engagement, on the other hand, reported a 19% increase in operating income and 28% growth in earnings per share.

In a 2009 study of 1478 full time US employees Maritz found companies stressing either strong principles or social ideals tend to be those that are most likely to attract employees. They also found companies that strive for high profits but offer little else intrinsically reward employees have to pay their employees a premium to keep them satisfied. When employees work for highly principled companies they not only enjoy their customer interactions more, but also feel customers are served better. Companies must strive for brand advocacy and loyalty with employees and customers.

Employees and customers are seeking to build relationships with companies whose Values reflect their own. It is no longer sufficient for values to simply reside in company mission and vision statements. They need be brought to life and inspire employees in such a manner that optimises the employee-customer relationship. They are the foundation upon which Trust is developed.

Values need to begin at the top. India has more than 50 billionaires and the average CEO in the US earns 400 times that of the average employee. Unfortunately there are still more than one billion people in the world who live in the state of extreme poverty and live on less than $1 a day. Clearly some individual values need to change and stakeholder pressure will force CEO's to change.

Employees demand authenticity and transparency in the employment experience and customers in the products and services they buy.

Starbucks has set of goal of making 100% of its cups recyclable by 2015, no small feat considering they produce four billion of the 500 billion annual paper and plastic cups. Contributing to a better SOCIETY not just involves Starbucks employees, but their customers as well. The focus on trust, values and society leads to higher levels of BRAND ADVOCACY AND LOYALTY amongst employees and customers. Achieving alignment between the elements in the model will lead to higher levels of profit whilst making a better global society.

Doing the right thing for employees, customers, investors and society is not just about being a good corporate citizen, it's necessary for business survival!

I believe the concept of employer branding 3.0 will drive discussions in the industry in the coming years. Employer branding 3.0: The next generation
HRM 17 Sep 2010 2.Recently, after spending upwards of $600,000 sending a U.S. manager and her family abroad, they had to return her abruptly when the family complained bitterly of missing their friends back home.
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